The staffing crisis in the private healthcare sector has prompted many employers to become landlords, with rental accommodation increasingly being offered in an attempt to secure workers.
The majority of private healthcare employers (85%) are struggling to attract and retain staff, leading to a growing reliance on agency and overseas workers.
Excel Recruitment's Healthcare Salary Guide 2024 tracks salaries and trends across the healthcare sector.
It reveals that many healthcare providers are offering sign-on bonuses of up to €5,000 in a bid to secure staff, particularly from overseas.
The private healthcare sector is "extremely reliant" on immigrants. "We wouldn't be able to function without them," Shane McLave, MD of Excel Recruitment, told Morning Ireland.
He said Ireland's reputation as a good place to work in health care has been hurt by protests opposing the accommodation of people seeking international protection here. "I think our reputation in Ireland has been tarnished by protests and the rhetoric that's out there."
Mr McLave also told the programme that the Government needs to look at ways to support the private healthcare system, which he said props up the public system. He said private healthcare regularly loses workers to the public system.
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"There needs to be an urgent rethink around the costs facing healthcare employers – and how the Government can support them to provide the remuneration and incentives that will attract and retain the staff that are necessary to provide a quality and safe healthcare system in Ireland," Mr McLave said.
"By 2035, Ireland's population is projected to reach 5.4 million, with a 50% increase in the elderly demographic. If the Government healthcare system already can't cope with the demands of the population today, how will it do so when confronted by the challenges posed by the aging population of 2035?"
While the pay rates of junior and entry-level workers have risen by as much as 17%, the salaries of many experienced and senior healthcare staff have often remained static or only slightly increased.
The recent increases in the national minimum wage have had a knock-on effect on pay rates across the sector with many junior healthcare staff being paid more than this time last year, while the pay rates of more experienced or senior staff have not moved.
In response to staffing challenges, organisations are exploring various strategies, including offering competitive benefits such as pension options, sick leave, extra holidays, and sign-on bonuses of up to €5,000. The Irish housing crisis has become a significant concern for employers and many healthcare providers, particularly outside of Dublin, are offering accommodation to attract professionals from different regions, both within and outside Ireland. This in turn has added to the already significant costs they are facing."
The average hourly rate for a kitchen porter working in a healthcare catering setting is up 17% on last year, from €11.80 to €13.80.
The average hourly rate of a cleaner working in healthcare is up 12.5% on last year - from €12 in 2023 to €13.50 today.
Most healthcare assistants have seen increases in pay rates of 10% or more.
By comparison, pay rates for a wide range of professional, managerial and senior staff have remained static over the last year including for roles such as head chef, care manager, social care worker, speech and language therapist and occupational health therapist.
"Healthcare candidates are now emphasising the importance of flexibility, recognising that a one-size-fits-all approach is impractical and more needs to be done for a better work-life balance," Mr McLave said. "To enhance long-term retention, organisations must embrace flexibility without compromising safety or patient care. Innovative tools like shift-swapping systems can facilitate this flexibility while addressing staffing gaps.
"The rise of contract work, with fixed-term contracts ranging from three to 12 months, has provided healthcare professionals with the desired flexibility. These contracts often include accommodation, and there has been an increase in retention and sign-on bonuses, along with improved benefits mirroring public packages in private facilities."
He said the healthcare workforce has shown a growing interest in agency work due to greater flexibility in work-life balance and the ability to work across a broad spectrum of healthcare facilities.
Over the past few years, the healthcare sector has faced significant challenges, including the impact of Covid-19, Brexit, and increased inward immigration. These factors have created hurdles for private healthcare operators in delivering services effectively.
The low unemployment rate in Ireland, and an increasing cost of living, has led to intense pressure on the labour market.
Looking ahead, staffing and recruitment pose significant challenges in the healthcare sector, with factors like mandatory sick pay, pension scheme changes, an additional bank holiday, and a minimum wage increase contributing to rising costs.
